Main image via SEGAbits , Review Geek
Sega is definitely one of the most well-known video game developers around but unfortunately, the company in Japan is struggling amidst the ongoing pandemic.
Sega Sammy Holdings announced that they have sold a majority of Sega entertainment to amusement machine company Genda after the arcade business was devastated by COVID-19.
The Tokyo-based company Genda Co. Ltd will take over around 200 Sega arcade centers in Japan in January 2021, but Sega confirmed that "customers will still be able to continue patronage as usual".
The company that recently celebrated their 60th anniversary, is also asking 650 employees to voluntarily retire, with directors and executives taking a pay cut.
Sega Sammy Holdings Inc. promised “payment of extraordinary retirement allowances” and reemployment support for the full-time staff who voluntarily retire, with the company's president, group COO and representative director Haruki Satomi seeing a 30% reduction in salary.
“As part of initiatives for structural reform to date, we announced the transfer of a portion of the shares of a consolidated subsidiary engaged in the operation of amusement facilities on November 4, 2020,” the company wrote in a statement.
“However, in order to recover earnings at an early stage and achieve sustainable growth in the future, we consider that it is necessary to promote cost-reduction centered on fixed expenses and build an even more efficient system and decided to call for voluntary retirement of employees.”
The company also has a “structural reform committee” set up to "build an organisational structure that can adapt to changes in the market environment” to combat the impact of COVID-19 on the business.
Sega previously shut down the iconic Sega Akihabara Building 2 arcade in August 2020 due to the pandemic as well.
It is definitely a challenging time for many businesses around the world now but we hope Sega and other businesses impacted by the pandemic can overcome the challenges and prevail!
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Info via Eurogamer , GamesIndustry.biz
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